Chinese stocks dropped to a 12-month low on Tuesday on concerns over the strength of global economic recovery and China's stubbornly high inflation.

The benchmark Shanghai Composite Index fell 0.03 percent to close at 2,526.07. The Shenzhen Component Index rose 0.02 percent to finish at 11,315.08.

Combined turnover dropped to 198.52 billion yuan (about $31.02 billion ) from 214.8 billion yuan the previous trading day.

Losers outnumbered gainers by 588 to 322 in Shanghai and 837 to 460 in Shenzhen.

The country's Consumer Price Index (CPI), a main gauge of inflation, surged 6.5 percent in July year-on-year, its highest level in 37 months, the National Bureau of Statistics said on Tuesday.

A faltering global recovery will make it harder for the government to curb inflation, as a possible third round of quantitative easing by the US Federal Reserve is expected to worsen global liquidity.

Electricity producers led the fall, with Guodian Changyuan Electric Power Co down 3.27 percent to close at 4.74 yuan per share, while Chongqing Three Gorges Water Conservancy and Electric Power Co went down 2.79 percent to 14.3 yuan.

The petroleum sector also dropped on falling international crude prices. Offshore Oil Engineering Co shed 5.03 percent to 3.59 yuan, while Xinjiang Zhundong Petroleum Technology Co declined 3.86 percent to 13.95 yuan per share.

Brokerages posted lackluster performance after monthly reports showed that their commission fees continued to fall last month. Shanxi Securities Co retreated 2.28 percent to 7.72 yuan, while China Merchants Securities Co fell 1.97 percent to 11.96 yuan.